The effect of location on finding a job in the Paris region
Article first published online: 9 JUN 2010
Copyright © 2010 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 26, Issue 7, pages 1079–1112, November/December 2011
How to Cite
Gobillon, L., Magnac, T. and Selod, H. (2011), The effect of location on finding a job in the Paris region. J. Appl. Econ., 26: 1079–1112. doi: 10.1002/jae.1168
- Issue published online: 23 OCT 2011
- Article first published online: 9 JUN 2010
- Manuscript Revised: 12 AUG 2009
- Manuscript Received: 26 FEB 2007
- Programme Interdisciplinaire Developpement Urbain Durable (PIDUD)
Do spatial differences in unemployment duration reflect residential sorting or a true local effect? Focusing on the 1300 municipalities of the Paris region, we apply a methodology that disentangles individual and unspecified municipality effects. Estimating a proportional hazard model stratified by municipality and recovering a survival function for each municipality purged of individual observed heterogeneity, we show that local and individual characteristics add up in their contribution to unemployment duration. While only 30% of the spatial disparities in unemployment duration are explained by individual characteristics, 70% of the remaining disparities are captured by local indicators, mainly correlated with residential segregation. Copyright © 2010 John Wiley & Sons, Ltd.